NICOSIA, March 21 – RAPSI. Cyprus will establish a special fund to raise cash for lowering the levy on deposits, a statement from the country’s government representative said on Thursday.

“A unanimous decision has been made on setting up an investment solidarity fund,” said the statement made following President Nicos Anastasiades’ meeting with members of the parliamentary parties.

Earlier, the media reported that the fund could include funds from Cyprus’ pension and insurance funds, which will allow a reduction in the €8.5 billion that the European Union demanded. The initial plan to introduce a one-time tax on deposits resulted in panic among depositors and fears of bankruptcy at the country’s banks, which have been closed since March 15.

According to Director of Social Insurance Services Theofanis Tryfonos, the provident funds have “very substantial amount of money.” Cyprus has about 1,800 provident and pension funds, as well as social insurance funds. The latest exact account deposit information is only available for 2011, and it’s difficult to name the exact figure, Tryfonos said.